Making Tax Digital (MTD) for Content Creators
What is MTD?
If you are a sole trader and earn money online through streaming, videos, Patreon, merchandise, or brand deals, Making Tax Digital (MTD) could affect how you report your income to HMRC. Starting in April 2026, creators with a turnover of £50,000 or more in the 2024/25 tax year must submit digital records on a quarterly basis to HMRC, along with a final submission. This is now five submissions, compared to the one annual return.
This means you will need to stay on top of your finances far more so than before and there are more risks of penalties with the increase in your reporting obligations.
Preparing now can make the transition much easier and help you avoid any last-minute, unnecessary stress.
Will this affect me?
MTD applies to individuals trading in their own name with a turnover above £50,000.
Turnover includes all of your online income, such as revenue from YouTube AdSense, Twitch subscriptions and tips, brand deals, sponsorships, Patreon memberships, Ko-fi income, merchandise sales, and competition or tournament winnings.
Creators operating through a limited company will not be affected in the same way, but it is important to understand your business setup and how it impacts your obligations. If you operate as a partnership, for example, then the obligations are different too.
What can I do now?
The first step is to check your total turnover for the 2024/25 tax year (6th April 2024 to 5thApril 2025). If your income is below £50,000, you do not need to act immediately, but keeping an eye on your earnings will help you plan for April 2027 when this threshold is lowered to £30,000.
For those above the threshold, itis important to give some thought on how you manage your finances. Keep clear digital records of income and expenses using accounting software, spreadsheets, or apps that simplify quarterly submissions.
Consider separating business and personal finances by setting up a dedicated business bank account. This ensures a clear record of all transactions and makes reporting to HMRC much easier.
Finally, speak with an accountant for professional guidance. StarBox can help creators set up the right engagement, organise their records, and advise on the best way to manage MTD requirements. Early preparation means the first MTD deadlines in August 2026 will not feel overwhelming.
Frequently asked questions
Are Twitch tips part of turnover for MTD?
Yes, all tips, subscriptions, and donations count as business income.
Does AdSense income count?
Yes, all online advertising revenue is included in turnover.
Do limited company owners need to worry?
Limited companies will have different obligations, so if you’re unsure, always check with an accountant.
Do I need to get some accounting software?
Not necessarily, whilst this may make life easier to prepare and submit the returns on one piece of software, it can be more expensive. There are alternatives out there that fit around any records you keep already and bridge the digital records gap.
What else counts as business income for creators?
Other than Adsense, this includes, but is not limited to: sponsorship income, TikTok payouts, brand deals, Patreon or Ko-fi income, merchandise sales, and competition winnings.
I’m not going to be able to make my first quarterly submission on time, am I going to be penalised?
Yes and no, the penalty regime is changing – any late submissions will attract a penalty point and multiple points will then lead to a financial penalty.
Get support from StarBox
If you are a content creator preparing for MTD, contact StarBox for help. We make it simple to stay compliant, keep your records organised, and submit quarterly returns with confidence.
At StarBox, our track record speaks for itself. Since taking on our first client in October 2011, we’ve grown to support more than 1,000 individuals and businesses in the creator economy, backed by a dedicated team of 28 specialists and additional expertise from the wider Carpenter Box group. Our clients collectively generate close to £500m in revenue. With over 150 years of combined experience in the creator space and nine team members currently working towards professional qualifications, we’ve been part of the UK creator economy since the very beginning, and we’re excited to shape its next chapter.
